SDTC Sample Application For Funding - PowerPoint Presentation

1. SDTC Sample Application For Funding

2. Company InformationPalette PVCompany InformationNamePalette PVHeadquartersCalgary, AlbertaIn Business sinceJuly, 2016 Main product or serviceSolar PV modules designed for exterior building-integrationAnnual Revenues$0# of Full-time Employees6Owner/major share holder(s)Jane Doe (51%), employees (12%) & private investors (37%)Funds raised to date$3.05M (angel investors)

3. Define The Sustainability ProblemIntegrating PV modules into buildings faces several hurdles:Cost vs ability to harness energy (the levelized cost of electricity for BIPV is significantly higher than ground-mounted or rooftop PV, largely because they are unable to track the sun and generally have less exposure).Material limitations Can be damaged by high winds and extreme precipitation.Must adhere to strict material specifications and standards of construction industry. Today’s solutions are not aesthetically pleasing Palette PV has developed an affordable module that is easily integrated to the roofs and sides of existing or new buildings.The technology leverages wavelength shifting technology and optimized microscopic solar cells, meets commercial building codes in all Canadian jurisdictions, can be tuned to nearly any colour (without efficiency losses), and can be installed on existing or new buildings.

4. Environmental Benefits - QualitativeBIPV installations result in cleaner air through the displacement of fossil fuel derived power generation.BIPVs can enhance buildings’ thermal and electrical management systems, leading to less dependency on the electrical and gas grid. By installing Palette BIPV, the technology will increase the proliferation of clean energy and provide building managers with a flexible solution to managing heat and cooling during both the summer and winter. Key assumptionsBuildings generally use natural gas for heating in winter and electrically powered centralized air conditioning systems in the summer.Capacity factors adjusted for seasonality and technology’s ability to gather solar energy over the course of a day.

5. Environmental Benefits - QuantitativeBaseline: Building grid power for air conditioning and natural gas based heat Environmental benefits are based upon the number of square feet of modules sold for cladding or roofingWe expect to sell roughly modules for 5,000 buildings at an average of 5,000 ft2 per building in the next 5 years0.01 MWh/ft2 which at standard grid factors would result in 1.5E-6 kilotonnes of CO2e reductions with the deployment of each unit. This will result in emissions reductions of 37.5 kilotonnes of CO2e

6. TechnologyPalette PV has developed a range of applications for its modules, including a window mount, side of building mount, and rooftop mounts (for various structures including parking garages). Panel Cross-sectionCurrent Collecting Conductors andInsulating FrameInboundLightColour TunedReflectedLight605nmReflected Light %Wavelength Shifting500nm900nmOur printable electronics-based microscopic solar cells are built on plastic film and are optimized to convert light in the 900nm wavelength rangePolycarbonate/GlassWavelength Shifting FilmSolar Energy Absorption FilmGlass/Backing MaterialAir Gap

7. TechnologyWavelength shifting film developed, modeled efficiency improvement of 0.75%Initial solar absorption film capable of producing charge of 0.001W/cm2 Layered films utilized to enhance solar generation by 0.5%Printable solar absorption film process prototypedAble to harvest power from solar absorption film at annual 0.01MWh/sqft at standard solar test conditions

8. TechnologyRiskImpact (H,M,L)Likelihood (H,M,L)MitigationIntegration of wavelength shifting and PE solar cell film does not scale wellMMPre-engineering will ensure successful, scaled integration of two main components.Modules translucency does not withstand inclement weatherLLSeveral building operators expressed interest in demonstrating technology in non-window applications due to potential benefits.Volatile Alberta weather skews data necessitating further testingM-HLAlternative business models will be considered if building operators do not want to purchase modules outright.

9. Technology – Key InnovationOur wavelength shifting film technology is enabled by quantum-dots and works to both reflect a chosen wavelength of light to provide tunable colour and shift other areas of the spectrum to the ideal absorption wavelengths for our solar cellsOur solar cell film is produced using printable electronics materials, allow for nearly invisible structures, while achieving low costThis combination will provide market-leading BIPV efficiency, giving Palette an opportunity to drive a market that has been slow to grow. Further, the ability to tune the panels to virtually any colour (during assembly) will allow customers to maintain the aesthetic of their building envelope.

10. Market – QuantificationKey Customer BenefitsLoad levelling with grid during high electricity pricesReduced reliance on natural gas grid for heatingAesthetically neutral/pleasing alternative to traditional building shell Payback Period for InvestorsWindow ModuleShell-Mounted ModuleIncumbent WindowIncumbent Shell-Mounted6 years4 years8 years6 years Paybacks are based upon the additional cost of our cladding material versus the payback from power savings at a rate of $0.15/kWh in our chosen initial target markets

11. Market – Commercial StrategyWe are bringing our product to market through the use of toll/contract manufacturing (Materials Engineering Inc.).We plan to initially market the product to architecture industry associations, architectural firms, and building owner/operators and will sell through a broad set of building supply distributors/retailers.We expect to initially target roughly 3% of the N.A. market with our high-end, high-efficiency product with a particular focus on the states of Florida, Texas, Arizona, New Mexico, Nevada, California and Hawaii.As sales grow and we are able to reduce the cost of manufacturing, we plan on targeting international markets and more northerly climates.

12. Market – Value PropositionThe global BIPV market is $7B opportunity (if window-integration and wall mounts are consolidated).In North America, the market is estimated to be roughly $250M (Canadian market $25M)

13. Market – CompetitorsCompetitor NameStrengthsWeaknessesBP Solar InternationalCapitalLack of focusCentrothermStrong heat control capabilitiesDoes not provide cold temperature modulationAGC Flat GlassWindow PV solution is market-leadingHave not innovated product in several yearsAblytekLow-cost provider Energy yield of product is less favourable to competition

14. Project OverviewProject OverviewProject start dateMarch 2019Project end dateNovember 2021Demonstration site(s)suNGO - Calgary, AlbertaOverall project objectiveTo pilot the technology initially, then demonstrate it on a larger scale with the same commercial building operator.Partners involvedPalette PV, Panasonic, and QuadRealEstimated project costs$6,200,000 (Palette contribution is $2.1M)

15. Project WorkplanMilestone ActivityDuration (months)Key objective to achievePre-Engineering8 Months Design demonstration-ready modules for various applications Module Development(Window and Building Shell-Mounted)12 Months Build modules and conduct durability/energy yield testing. Refine design if necessary.Commercial Building Demonstration13 MonthsInstall modules (1 month) and gather data from building operators over 1 year.

16. Project PartnersPartner OrganizationRole in projectSector (e.g. private, public academia, or NGO)Relationship status(confirmed; developing; applying)Estimated funding Amount (CAD)Estimated funding Amount In-KindStatus of Financing(Confirmed; Developing; or Applying)Palette PVLead ApplicantPrivate – Lead organizationN/A$2.1M (Cash)$1M Confirmed, $1.1M DevelopingMaterials Engineering Inc.Toll Manufacturer and Co-developerPrivateConfirmed$0.3M (in-kind)ConfirmedsuNGODemonstration HostNGOConfirmed$0.5M (in-kind)ConfirmedCommercial Operators Inc.Demonstration HostPrivateConfirmed$0.5M (in-kind)DevelopingUniversity of CalgaryDevelopment PartnerAcademiaConfirmed$0.5M (in-kind)ConfirmedSDTCFunding PartnerPublicApplying$2.3M (Cash - 37%)ApplyingTotalN/AN/APartially Confirmed$6.2MPartially Confirmed

17. Project BudgetItemEstimate (CAD)Labour$2,900,000Travel$750,000Equipment/materials$1,050,000Subcontractors$1,400,000Other$100,000 (IP strategy development)Total$6,200,000

18. Management TeamNameTitleRelevant experienceJane Doe, P. Eng President and CTO10 years of experience in the PV module industry spread between California, Ontario, and China. Has worked as a technology developer at several startup firms and pivoted towards business development during her time in China.John Doe (not related), MBACMO15 years of experience in commercial building management in North America.James Doe (not related), MBACFOHas developed IP strategies for 2 start-ups and is well-connected in the fundraising community (~10 years). Jenny Doe (not related), PhD, P.EngTechnical AdvisorMaterials specialist with focus on solar module industry with 15 years of industry expertise.

19. Management TeamNameTitleRelevant experienceJane Doe, P. Eng President and CTO10 years of experience in the PV module industry spread between California, Ontario, and China. Has worked as a technology developer at several startup firms and pivoted towards business development during her time in China.John Doe (not related), MBACMO15 years of experience in commercial building management in North America.James Doe (not related), MBACFOHas developed IP strategies for 2 start-ups and is well-connected in the fundraising community (~10 years). Jenny Doe (not related), PhD, P.EngTechnical AdvisorMaterials specialist with focus on solar module industry with 15 years of industry expertise.

20. Intellectual PropertyIP TypeCountryNumberFiling DateStatusDescriptionPatentCanadaPat. No.:8,888,888August 2, 2016GrantedCovers the integration of wavelength shifting technology with PE based solar absorption film in building-integrated applicationsPatentUSApp. No. 2,222,222November, 2016PendingCovers the integration of wavelength shifting technology with PE based solar absorption film in building-integrated applicationsTrademarkCanadaTMA555555July 6, 2015GrantedCovers use of Palette PV’s logo

21. Intellectual PropertyPlease give a brief summary of your project scope and objectives, focusing on how this project solves an industry problem.Palette PV’s modules overcome the cost, material, and aesthetic challenges associated with current BIPV systems. The project will take place over 33 months and will demonstrate Palette’s modules in a commercial setting, which will provide real-world proof of concept to potential customers. The North American market is currently $225M – Palette will initially target 3%Potential environmental benefits are emissions reductions of 37.5 kilotonnes of CO2e within 5 years of commercialization

22. Media Ready DescriptionPalette PV is a building-integrated photovoltaic module producer and provider. The company specializes in high-efficiency, aesthetically neutral/pleasing window-based or shell-mounted modules. Palette is a Calgary-based company working to create a product that can be easily integrated into commercial buildings to provide energy flexibility without compromising the aesthetic of the design.